Gold prices fell on Thursday, March 2, as the dollar rose, while a new set of global economic data reinforced investor concerns about interest rates remaining high for longer than expected.
Gold in instant transactions fell 0.2% to $ 1833.57 an ounce, after reaching the highest level in a week yesterday, Wednesday.
US gold futures fell 0.3% to $1,840.50.
Although considered a hedge against inflation, raising interest rates to curb prices increases the opportunity cost of holding non-yielding precious metal.
The dollar index rose 0.1%, making the yellow metal more expensive for buyers holding other currencies.
Data on Wednesday showed manufacturing activity in the United States contracted for the fourth consecutive month in February, but there were signs that factory activity was beginning to stabilize, with a measure of new orders rising from the lowest level in more than two-and-a-half years.
Fed policymakers will present updated forecasts for the path of the interest rate and the economy at the end of their March 21-22 meeting.
Data on Wednesday also showed consumer prices in Germany rose more-than-expected in February, after data released on Tuesday showed unexpected inflation in France and Spain, which boosted expectations that the European Central Bank would raise interest rates.
Among other precious metals, silver fell in spot transactions by 0.5% to $20.90 an ounce, and palladium lost 0.8%, recording $1428.85.
Platinum fell 0.5% to $950.64, after hitting a three-week high in the previous session.
